Innovation and New Product Strategy Pertemuan 13 Buku 1 Hal: Matakuliah: J Strategi Pemasaran Tahun: 2009

Bina Nusantara Innovation as a Customer Driven Process New Product Planning Idea Generation Screening, Evaluating, and Business Analysis Product and Process Development Marketing Strategy and Market Testing Commercialization Variation in the Generic New Product Planning Process Learning Objective

Customer value analysis Objective is to identify needs for: 1.New products 2.Improvements to existing products 3.Improvements in production processes 4.Improvements in supporting services

Customer Expectations Customer Satisfaction Gap Actual Product Performance OPPORTUNITIES (1) New Products (2) Improvements (3) New and Improved Processes

TRANSFORMATIONAL Break-through innovation Digital photography NEW PRODUCT CATEGORY Dell Printers Nike Apparel Golf clubs LINE EXTENSION New color/package/style INCREMENTAL IMPROVEMENTS Software updates

The Evolution of the Creative Company STEP 1 Technology and information become commoditized and globalized. Suddenly, the advantage of making things “faster, cheaper, better” diminishes, and profit margins decline. STEP 2 With commoditization, core advantages can be shipped abroad. Outsourcing to India, China, and Eastern Europe sends a growing share of manufacturing and even the Knowledge Economy overseas. STEP 3 Design Strategy begins to replace Six Sigma as a key organizing principle. Design plays a key role in product differentiation, decision-making, and understanding the consumer experience.

STEP 4 Creative innovation becomes the key driver of growth. Companies master new design thinking and metrics and create products that address consumers’ unmet, and often unarticulated, desires. STEP 5 The successful Creative Corporation emerges, with new Innovation DNA. Winners build a fast-moving culture that routinely beats competitors because of a high success rate for innovation.

Characteristics of Successful Innovators STRATEGIC INITIATIVES Creating an Innovative Culture Leveraging Capabilities Selecting the Right Innovation Strategy Developing and Implementing Effective New Product Processes Making Resource Commitments

Creating an Innovation Culture  Innovation Workshop for top executives to develop an innovation plan.  Innovation Statement highlighting objectives and senior management’s role and responsibilities.  Training programs for employees and managers.  Communicate the priority of innovation.  Speakers to expose employees to innovation authorities.

INNOVATION FEATURE Managing Google’s Idea Factory As director of consumer Web products Marissa Mayer is a champion of innovation. She favors new product launches that are early and often. She joined Google in early 1999 as a programmer when the workforce totaled 20. By 2007 Google had 5,700 employees with expected sales of $16 billion. How Google Innovates The search leader has earned a reputation as one of the most innovative companies in the world of technology. A few of the ways Google hatches new ideas: FREE (THINKING) TIME Google gives all engineers one day a week to develop their own pet projects, no matter how far from the company’s central mission. If work gets in the way of free days for a few weeks, they accumulate. Google News came out of this process.

 THE IDEAS LIST Anyone at Google can post thoughts for new technologies of businesses on an ideas mailing list, available companywide for input and vetting. But beware: Newbies who suggest familiar or poorly thought-out ideas can face an intellectual pummeling.  OPEN OFFICE HOURS Think back to your professors’ office hours in college. That’s pretty much what key managers, including Mayer, do two or three times a week, to discuss new ideas. One success born of this approach was Google’s personalized home page.  BIG BRAINSTORMS As it has grown, Google has cut back on brainstorming sessions. Mayer still has them eight times a year, but limits hers to 100 engineers. Six concepts are pitched and discussed for 10 minutes each. The goal: to build on the initial idea with at least one complementary idea per minute.  ACQUIRE GOOD IDEAS Although Google strongly prefers to develop technology in-house, it has also been willing to snap up small companies with interesting initiatives. In 2004 it bought Keyhole, including the technology that let Google offer sophisticated maps with satellite imagery.